From the Chicago Tribune, we have Here's a new one: Being too broke to sell.
Most anybody in the mortgage business will tell you that August was a month that will live in infamy: The market was in turmoil, as doubts about the stability of subprime loans spread to other sectors of the mortgage world.
The cancellation rate undoubtedly was fed by two scenarios playing out: Many buyers couldn't get mortgage approval because lending suddenly tightened; or, financially strained lenders yanked funding from their borrowers at the last minute.
But another factor was at work: Sellers -- not buyers -- were in trouble as their closing dates neared.
"Our office had four sales in one week that failed to close because the seller didn't have the cash," said the real estate agent, who declined to be identified because she feared office repercussions.
The sellers couldn't come up with the money?
It seems that for those homeowners on the margins -- those with some but not much equity -- the costs of a real estate transaction are turning into a kick in the pants.
Oooh! guess those HELOC's are really working out for you, babykins.
How's that oh-so-delightful Gucci purse now? And the fake tits? Keep 'em nice and jiggly 'cause you'll be needing them to make up the difference.
Just make sure you pray to baby-Jebus that they don't spring a "leak".
We'll just call this saving for the downpayment after the fact!
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